The Best Hostel in the City
This is probably the only hostel that's specifically aimed at backpackers because the other Chinese budget hotels are usually completely devoid of any atmosphere. The MI2 is a bit out of the way but in return offers free transportation to and from the airport, which is about 45 minutes away from the city, so you save money on taxis. Breakfast is the best I've had in Myanmar, and it was my last day in the country. They had good bread and real coffee. As many travelers know that arriving at odd hours by the insane transport system in Myanmar, if you leave at 4 a.m. like I do, your room isn't free.